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Lever brothers

Bud can swallow SABMiller without busting a gut

Robert Cole 

Robert Cole Anheuser-Busch InBev should be able to swallow a deal with SABMiller without busting a gut. Even at a huge-sounding $110 billion, the Belgo-American brewer could take on its Anglo-South African rival by paying partly with equity and making disposals that ease the burden further. Start with that theoretical headline value. AB InBev has so far only made an informal approach to SAB, but assume it must pay a 35 per cent premium to the target's share price on September 15, the day before the deal was mooted, to get a hearing. Add SAB's existing net debt of around $10 billion. The total ...

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First Published: Thu, September 17 2015. 21:32 IST